Pearce refutes claims she wants to change ELF

Petroleum News Alaska Staff

In a Jan. 17 statement, Alaska Senator Drue Pearce said that contrary to reports in the Alaska Journal of Commerce and the Alaska Legislative Digest, she is emphatically not interested in changing the economic limit factor, the formula that determines the rate reduction on small or economically marginal fields.

“These articles are patently false,” said Pearce. “I have no interest in changes to ELF. In fact, I haven’t discussed ELF in any context for a long time.”

The ELF was designed more than 10 years ago as an economic incentive to encourage development of small or economically marginal oil fields. Debate over modifications to the formula has proven contentious in the past. The program has worked effectively to extend production of North Slope oil.

“It is unfortunate that respected journalists are spreading nonfactual and unfounded rumors about an issue that is this important to the economic health of our state,” said Pearce. “I am especially disturbed that no one called me to verify this erroneous story before the articles were written.”